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Stanley Black's (SWK) Q2 Earnings Beat, Revenues Down Y/Y
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Stanley Black & Decker, Inc. (SWK - Free Report) reported second-quarter 2024 adjusted earnings of $1.09 per share, which beat the Zacks Consensus Estimate of 85 cents. The company reported a loss of 11 cents per share in the year-ago quarter.
Stanley Black’s net sales of $4.02 billion beat the consensus estimate of $4.01 billion. The top line declined 3.2% year over year due to weakness in the Industrial segment.
Segmental Discussion
Revenues from SWK’s primary segment, Tools & Outdoor, totaled $3.53 billion, flat year over year. Our estimate for segmental revenues was $3.4 billion.
Revenues from the Industrial segment grossed $495.7 million, down 19.6% year over year. Our estimate for segmental revenues was $586.5 million.
Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise
Stanley Black’s cost of sales decreased 22.4% year over year to $2.9 billion. The gross profit increased 22.4% year over year to $1.1 billion. The gross margin increased 600 basis points (bps) year over year to 28.4%.
Selling, general and administrative expenses decreased 1% year over year to $828.6 million. Adjusted EBITDA was $429.3 million, reflecting year-over-year growth of 80%. The margin increased 500 bps to 10.7%.
Balance Sheet and Cash Flow
While exiting the second quarter, Stanley Black had cash and cash equivalents of $318.5 million compared with $449.4 million at the end of fourth-quarter 2023. The long-term debt balance was $5.6 billion, lower than $6.1 billion reported at the end of fourth-quarter 2023.
In the first six months of 2024, net cash generated in operating activities was $142 million against $21.9 million cash used in the year-ago period. Capital and software expenditures totaled $152.9 million, up from $136.5 million reported in the year-ago period. Free cash outflow (before dividends) was $10.9 million compared with $158.4 million free cash outflow a year ago.
In the first six months of the year, SWK paid out dividends worth $243.6 million to its shareholders, up 1.7% from the year-ago period.
2024 Guidance
Stanley Black expects adjusted earnings to be in the range of $3.70-$4.50 per share. The Zacks Consensus Estimate for earnings is pegged at $3.98 per share. It anticipates earnings of 90 cents-$2.00 per share in the year.
Stanley Black expects a free cash flow in the range of $0.65-$0.85 billion.
Pentair plc (PNR - Free Report) reported second-quarter adjusted earnings per share of $1.22, which beat the Zacks Consensus Estimate of $1.15. The reported figure also improved 18% from the year-ago quarter.
Net sales rose 1.6% year over year to $1.1 billion. PNR’s top line outpaced the Zacks Consensus Estimate of $1.09 billion.
Crown Holdings, Inc. (CCK - Free Report) reported second-quarter adjusted earnings per share of $1.81, which beat the Zacks Consensus Estimate of $1.59. The bottom line improved 8% year over year.
Net sales totaled $3.04 billion, down 2.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.06 billion.
A. O. Smith Corporation’s (AOS - Free Report) second-quarter adjusted earnings of $1.06 per share missed the Zacks Consensus Estimate of $1.07. However, the bottom line increased 5% on a year-over-year basis.
Net sales of $1.02 billion surpassed the consensus estimate of $992 million. The top line increased 7% year over year, driven by strong demand for residential and commercial water heaters in North America.
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Stanley Black's (SWK) Q2 Earnings Beat, Revenues Down Y/Y
Stanley Black & Decker, Inc. (SWK - Free Report) reported second-quarter 2024 adjusted earnings of $1.09 per share, which beat the Zacks Consensus Estimate of 85 cents. The company reported a loss of 11 cents per share in the year-ago quarter.
Stanley Black’s net sales of $4.02 billion beat the consensus estimate of $4.01 billion. The top line declined 3.2% year over year due to weakness in the Industrial segment.
Segmental Discussion
Revenues from SWK’s primary segment, Tools & Outdoor, totaled $3.53 billion, flat year over year. Our estimate for segmental revenues was $3.4 billion.
Revenues from the Industrial segment grossed $495.7 million, down 19.6% year over year. Our estimate for segmental revenues was $586.5 million.
Stanley Black & Decker, Inc. Price, Consensus and EPS Surprise
Stanley Black & Decker, Inc. price-consensus-eps-surprise-chart | Stanley Black & Decker, Inc. Quote
Margin Profile
Stanley Black’s cost of sales decreased 22.4% year over year to $2.9 billion. The gross profit increased 22.4% year over year to $1.1 billion. The gross margin increased 600 basis points (bps) year over year to 28.4%.
Selling, general and administrative expenses decreased 1% year over year to $828.6 million. Adjusted EBITDA was $429.3 million, reflecting year-over-year growth of 80%. The margin increased 500 bps to 10.7%.
Balance Sheet and Cash Flow
While exiting the second quarter, Stanley Black had cash and cash equivalents of $318.5 million compared with $449.4 million at the end of fourth-quarter 2023. The long-term debt balance was $5.6 billion, lower than $6.1 billion reported at the end of fourth-quarter 2023.
In the first six months of 2024, net cash generated in operating activities was $142 million against $21.9 million cash used in the year-ago period. Capital and software expenditures totaled $152.9 million, up from $136.5 million reported in the year-ago period. Free cash outflow (before dividends) was $10.9 million compared with $158.4 million free cash outflow a year ago.
In the first six months of the year, SWK paid out dividends worth $243.6 million to its shareholders, up 1.7% from the year-ago period.
2024 Guidance
Stanley Black expects adjusted earnings to be in the range of $3.70-$4.50 per share. The Zacks Consensus Estimate for earnings is pegged at $3.98 per share. It anticipates earnings of 90 cents-$2.00 per share in the year.
Stanley Black expects a free cash flow in the range of $0.65-$0.85 billion.
Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Industrial Companies
Pentair plc (PNR - Free Report) reported second-quarter adjusted earnings per share of $1.22, which beat the Zacks Consensus Estimate of $1.15. The reported figure also improved 18% from the year-ago quarter.
Net sales rose 1.6% year over year to $1.1 billion. PNR’s top line outpaced the Zacks Consensus Estimate of $1.09 billion.
Crown Holdings, Inc. (CCK - Free Report) reported second-quarter adjusted earnings per share of $1.81, which beat the Zacks Consensus Estimate of $1.59. The bottom line improved 8% year over year.
Net sales totaled $3.04 billion, down 2.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $3.06 billion.
A. O. Smith Corporation’s (AOS - Free Report) second-quarter adjusted earnings of $1.06 per share missed the Zacks Consensus Estimate of $1.07. However, the bottom line increased 5% on a year-over-year basis.
Net sales of $1.02 billion surpassed the consensus estimate of $992 million. The top line increased 7% year over year, driven by strong demand for residential and commercial water heaters in North America.